Yuanshen Technology and Xiyou Health Forge Strategic Partnership to Accelerate Growth in Out-of-Hospital Pharma-Medical Device Retail

Recently, Beijing Yuanxin Technology Co., Ltd. (hereinafter referred to as “Yuanxin Tech”), a unicorn in China’s internet healthcare and medication management sector, signed a strategic cooperation agreement with Beijing Xiyou Tiantian Health Technology Co., Ltd. (hereinafter referred to as “Xiyou Health”), a startup in the new retail of pharmaceuticals and health products. Leveraging Yuanxin Tech’s offline pharmaceutical retail terminals and Xiyou Health’s professional sales and service capabilities for home-use medical devices, both parties will comprehensively upgrade and build an operational system for the home-use medical device category, further strengthening the out-of-hospital comprehensive pharmaceutical service capabilities of the “Yuanxin Ecosystem.”

Reports indicate that the domestic medical device market has experienced steady growth over the past five years, with an average annual growth rate of approximately 20%. The market size is projected to exceed RMB 900 billion by 2022. Influenced by technologies such as artificial intelligence, the Internet of Things (IoT), and 5G, home-use medical devices and intelligent portable medical equipment have garnered significant attention, accounting for an increasing share of the industry. Driven by strengthened policy support, rising market demand, and an accelerating aging population, the retail sector for medical devices is poised to achieve even greater breakthroughs.

In response, a representative of Yuanxin Technology stated, “By leveraging Yuanxin Technology’s expertise in pharmaceutical retail terminals and Xiyou Health’s specialization in home-use medical devices, the strategic partnership between the two industry leaders will achieve complementary advantages. This collaboration will secure a strong position on the fast track of growth in the home medical device sector, comprehensively strengthening our presence across channels, sales, and user services, thereby establishing a benchmark for win-win cooperation among healthcare, pharmaceuticals, and medical devices.”

It is reported that Yuanxin Technology has established a nationwide professional platform for patient follow-up consultations and a secure medication dispensing center through its “Miaoshou Doctor” and “Yuanxin Pharmacy” brands. The company operates follow-up consultation and medication management services across seven specialized therapeutic areas, providing clinical pharmaceutical services in over 70 cities throughout China. It independently operates more than 200 hospital-adjacent and Direct-to-Patient (DTP) pharmacies, offering access to over 26,000 pharmaceutical products. Yuanxin Technology’s “comprehensive network” model has gained widespread acceptance in the pharmaceutical retail market.

As a health-focused new retail enterprise established just last year, Xiyou Health has been “keeping a low profile.” Its founder and CEO, Kang Kai, formerly served as a Director at AliHealth and General Manager of Tmall’s Pharmaceutical and Healthcare Division. The company has integrated the operational and service resources of Kangfu Zhijia, a major domestic distributor of home medical devices. By adopting a business model that facilitates extensive collaborations with terminal pharmacies, Xiyou Health has helped numerous pharmaceutical retail enterprises achieve rapid growth in both the sales volume and profits of their medical device segments after its integration.

An insider at Xiyou Health stated, “Centered on a new retail business model that prioritizes people-first principles, leverages complementary strengths, integrates channels, and co-builds an ecosystem, this strategic partnership with Yuanxin Technology will further expand the scale of China’s home medical device market at domestic retail terminals. It will promote the integration of resources and innovative development within the medical device industry in the pharmaceutical sector, ultimately benefiting a broader population of health consumers.”